Sustainability report 2009

Why we engage

We seek to work closely with customers, to have a thorough understanding of their needs and processes and to achieve outstanding levels of customer satisfaction.

A substantial proportion of the Group's business is conducted with organisations with whom we have long-term relationships, so customer feedback is regular and promotes two-way communication.

Our Code of Conduct clearly states that we are committed to communicate truthfully, clearly and regularly with our customers.

How we engage

• Running regular customer attitude and opinion surveys
• Involving customers in our Zero Harm safety vision
• Collating our customers’ perspectives on Balfour Beatty to help define our Group values of integrity, teamwork, excellence and respect

What’s next?

• Recognising that much of our business is carried out through partnering, we have launched an alliance exchange programme across UK businesses. A toolkit is being developed to help our employees communicate effectively with current customers
• We need to engage with our customers further and work with them to agree deliverables, so that our businesses can meet our 2012 sustainability expectations

Why we engage

We seek to provide shareholders with improving returns over the long-term and give them the information they need to make well-informed investment decisions.

How we engage

• Running an active investor engagement programme involving regular roadshows and one-to-one meetings. During 2009, senior executives held over 140 meetings with institutional investors. An Investor Day was held in London, which included a visit to the London Aquatics Centre we are building for the 2012 Olympics and provided us with the opportunity to showcase Zero Harm and sustainability in action
• With the acquisition of Parsons Brinckerhoff in October 2009, senior executives conducted over 30 investor meetings to communicate effectively about the deal
• All our financial presentations are webcast
• Balfour Beatty shareholders can access details of their shareholding over the internet, and our registrars provide them with clear guidance regarding topical issues
• Our Annual General Meeting provides shareholders with the opportunity to speak directly to our Board

What’s next?

• Increase our shareholder communications in 2010 by providing them with a focused piece of communication explaining the Company results and new business segmentation
• We have recently appointed an independent external corporate and investor relations consultant. They provide advice on the relationship between the Company and its institutional investors
• Broaden investor engagement outside the UK

Why we engage

Balfour Beatty aims to create a safe, healthy, challenging, rewarding, participative and fair working environment for all employees. Giving our employees a ‘voice’ is central to creating a unified culture where our employees feel motivated and understand the direction in which the Company is heading.

How we engage

• Our businesses use a variety of methods to communicate key business goals and issues and also consult and involve their employees through local publications, briefing groups, consultative meetings, representative bodies, training programmes and working groups
• All employees receive the Group’s six-monthly magazine, Update, which was refreshed in 2009 to reflect the growing Group and its strategic priorities
• Employee surveys are conducted in the majority of our businesses
• We regularly meet with employee representatives to discuss topics of mutual interest and to keep them informed about our business
• Our Code of Conduct, and accompanying online training, aims to ensure that all employees feel well-equipped to make the right decisions
• The acquisition of Parsons Brinckerhoff has led to various integration communications, such as roadshows, webcasts and e-newsletters, going to those employees involved, plus employees of the wider Balfour Beatty Group. A “Who’s Who” directory of management teams across the business was also published in 2009, connecting people across the Group
• Our Zero Harm safety vision has led to an increased level of employee roadshows across the business
• We hold regular management conferences
• An assistance network is in place for all pensioners needing help and advice. Regular pensioner roadshows are also held and a twice-yearly magazine published

What’s next?

• Communicate the strategic direction of the Company through an employee booklet, and page-turn PDF for intranets, issued after the financial results
• The workshops developed to roll-out the Group Values programme prioritise face-to-face communication, and values leaders across the business will collate employee feedback on the programme
• Develop an e-learning and off-line sustainability course to support the embedding of the 2020 vision
• HR working group set up to review employee satisfaction surveys with a view to having some consistent questions across the Group
• Conduct a readership survey for Update magazine, and include a questionnaire to gather feedback
• Contrive to promote greater knowledge sharing across the Group

Why we engage

Over half of Balfour Beatty’s work is undertaken for governments. We seek to operate fully within legal and regulatory boundaries and wish to engage with governments and regulators to understand the issues that may impact our business, particularly those that affect our customers and the communities in which we operate.

How we engage

• We seek active and positive relationships with both our public sector customers and those departments and organisations which regulate the activities of our sector to ensure that our own policies and practices meet all their key requirements
• We make sure any public policy or political activity we undertake is lawful, ethical and within our code, and as a Company we do not participate directly in party political activities
• We run a pro-active Government affairs programme and senior executives often attend conferences to discuss governmental issues

What’s next?

• Initiate a new public affairs programme following the UK election to engage with key Government officials
• Expand our public affairs activity in the US

Why we engage

Balfour Beatty aims to make a lasting positive impact on the communities in which we operate. By engaging with local communities, we believe we protect and strengthen these communities. We also want to deliver better projects and services to help us secure future work.

How we engage

• Consultation on our projects involves leaflet drops, project websites and community discussions or exhibitions. Most of our larger sites have community relations officers
• We have developed a number of national and local initiatives which reflect our commitment to and which are targeted at improving the life prospects of young people

What’s next?

• With more long-term projects and maintaining assets for our customers for many years, we need to work constantly to improve the planning and implementation of community liaison work
• We plan to build on the momentum of charitable giving started in our centenary year to include our international operations further

Why we engage

We want to create long-term partnerships with suppliers based on the compatibility of their values and behaviour as well as product quality and price. We need the support of sub-contractors to deliver the majority of our projects, and consistent engagement helps us to work together to understand each others’ needs, and to exceed customer expectations.

How we engage

• During 2009 our businesses shared and involved many of our suppliers in our Zero Harm and Sustainability visions. In partnering with key suppliers, we hope that they will align their own sustainability programmes with our roadmap and seek to influence our energy consumption, waste and responsible sourcing of materials in a positive way
• Many of our operating companies organise meet the supplier days, fostering a collaborative working culture

What’s next?

• During 2010, our UK operating companies are working to deliver industry-leading procurement and supply chain management solutions, involving our suppliers in this journey
• We will work to engage further with our suppliers to embed Zero Harm and sustainability within our supply chain

Why we engage

We believe that co-operation with other companies in our sectors on sustainability issues can help us drive improvement in a way that we cannot do on our own. Sector-led initiatives can drive the adoption of best practice.

How we engage

• During 2009 we worked with a number of companies to promote best practice in safety and environment through the UK Contractors’ Group, such as helping to develop best practice in water conservation during construction and share carbon best practice through the CBI construction council climate change sub-group
• Through Dutco Balfour Beatty, we continue to chair BuildSafeUAE which develops and shares safety information across the construction sector in the Gulf

What’s next?

During 2010 our operating companies are reviewing their interactions with trade associations and other companies in our sectors to determine the best methods of positively influencing markets for more sustainable outcomes.